Chill Brands Group PLC (LSE:CHLL, OTCQX:CHBRF) has rejected an alternative plan to its £3.5mln funding announced on 26 April and instead intends to raise a further a £480,000 through an open offer to existing shareholders.
The CBD products specialist said it rejected the alternative proposal on the basis it would not provide the company with sufficient working capital or the funds required for its business activities.
Chill Brands added that based on feedback received from a number of long-term shareholders it also decided to go ahead with an open offer on a one-for-ten basis and equivalent terms to the April funding.
Terms of that April funding were a £583,000 share subscription at a price of 2p apiece and an issue of £2.92mln of loan notes convertible into ordinary shares at the same price.
Callum Sommerton, Chill Brands CEO, said: "We are pleased to announce our intention to make this open offer to enable our shareholders to subscribe on equivalent terms as participants in our recent fundraising.
“Subject to approval at our upcoming general meeting, our recent fundraising activity will ensure the company is well capitalised and able to grow.
“In a world of CBD lookalike products, we will continue to work to differentiate the Chill brand from industry competitors as we seek to generate value for all stakeholders."